The Debt Relief Orders (Designation of Competent Authorities) Regulations 2009

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations are made under section 251U (approved intermediaries) of the Insolvency Act 1986, inserted by the Tribunals, Courts and Enforcement Act 2007. That Act inserted a new Part 7A into the Insolvency Act 1986 making provision for applications for, and making of, debt relief orders. An application for a debt relief order must be made to the official receiver through an approved intermediary. Approved intermediaries are individuals approved by a competent authority to act as an intermediary between a person wishing to make an application for a debt relief order and the official receiver. “Competent authority” means a body for the time being designated by the Secretary of State for the purpose of granting approvals to individuals to act as intermediaries. The Secretary of State is given power to make regulations pursuant to section 251U to provide: (i) for the procedure for designating bodies as competent authorities; (ii) descriptions of individuals who are ineligible to be approved as intermediaries; (iii) the procedure for granting approvals and (iv) for the withdrawal of designations or approvals.

Regulations 3 to 7 in Part 1 of the Regulations make provision for the designation of competent authorities by the Secretary of State. Regulation 3 sets out the grounds for the designation of competent authorities by the Secretary of State. Regulation 4 describes the manner and form of the application for designation. Regulation 5 limits designations to bodies which are fit and proper bodies as defined by the regulations. Regulation 6 makes provision for the extent of the designation, which may be limited or unlimited. Regulation 7 makes provision for the modification or withdrawal of a designation.

Regulations 8 to 11 in Part 2 of the Regulations make provision for the approval of intermediaries by competent authorities. Regulation 8 makes provision for fit and proper persons to be approved to act as intermediaries. Regulation 9 provides descriptions of individuals deemed not to be fit and proper persons and therefore not to be approved by competent authorities to act as intermediaries. Regulation 10 describes the manner and form of an application for approval to act. Regulation 11 makes provision for the withdrawal of approval.

An impact assessment on debt relief orders was prepared for the debt relief order provisions of the Tribunal, Courts and Enforcement Act 2007. It may be consulted on the website: www.dca.gov.uk/consult/debt/debt.htm and www.insolvency.gov.uk htm.